COMPANY INSIGHT

Finance and Asset Solutions for the
Mining Sector

For more than 115 years, Gordon Brothers has helped businesses move forward through change utilising asset expertise, capital solutions and calculated optimisation of all mining assets.

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Gordon Brothers generate liquidity to provide flexibility to owners, operators, lenders and investors to help firms achieve strategic change.

That was exactly what an international mining company recently needed when it decided to exit the Australian market and wind down its Koolyanobbing, WA operations. In order to facilitate a smooth withdrawal, it required immediate liquidity and a rapid solution, which Gordon Brothers was able to provide.

Based on the in-house capabilities of the Gordon Brothers team, including former asset valuers and auctioneers, the group was able to efficiently assess the value of the portfolio of mining and earthmoving equipment to offer an equitable solution for the mining company. In July, Gordon Brothers successfully implemented this solution, acquiring the assets outright thereby enabling the company to execute its plans without the encumbrance of managing the individual and lengthy sale of the assets.

This solution has made the assets available to buyers amidst a shortage of available mining equipment in the market and prolonged manufacturing lead times. The fit-for-purpose assets comprise over 300 major pieces of machinery and equipment from Komatsu, Atlas Copco, Daewoo, Doosan, Kenworth, Sandvik and other brands. Asset types include drills, dump trucks, excavator, graders, prime movers, as well as other attachments and accessories.

Tim Stewart, Head of Gordon Brothers in Australia, stated, “This deal is really the first time that a financial asset advisory firm like ourselves has put their balance sheet behind a transaction of this size. We were able to provide the client with immediate liquidity and solve their problem.”

Gordon Brothers specialises in structuring complex, multi-asset transactions, serving as a partner to business at all points in the business cycle. The firm assists during times of growth, transformation, turnaround or strategic consolidation.

“Clients undergoing change typically need cash and certainty. We provide both. Our balance sheet and asset knowledge allow us to respond very quickly to our clients all over the world and across multiple jurisdictions,” Stewart added.

Internationally, Gordon Brothers past clients’ include North American Tungsten, Odebrecht, Clayton Directional Drilling, Siemens, and Wilbanks Energy Logistics. As part of the North American Tungsten project, Gordon Brothers sold more than 140 pieces of equipment for the Canadian mining company, despite the remote location of the assets associated with the Cantung Mine in the Northwest Territories.

Clients undergoing change typically need cash and certainty. We provide both

Banner Trucks - Available for immediate sale are Komatsu dump trucks, dozers, excavators, graders and water carts, Atlas Copco and Sandvik drills, Kenworth prime movers and Boomerang side tipper combinations.

It’s particularly satisfying to be able to help companies that might otherwise be constrained find a path forward that allows them to build on the best aspects of their business

Gordon Brothers also recently acquired assets from Odebrecht, Latin America’s largest construction and engineering company, managing the risk and logistics involved with transporting the assets from Brazil to Western Australia.

“While we provide coverage across many retail & consumer and commercial & industrial sectors, we’re developing very pronounced expertise in mining and transport, in large part because there’s such a strong need here in Australia right now,” said Matt Aubrey, Managing Director, Australia. “Fenton and I have spent decades inspecting, valuing and selling these assets, so we’re right at home here,” he added.

“It’s particularly satisfying to be able to help companies that might otherwise be constrained find a path forward that allows them to build on the best aspects of their business,” added Fenton Healy, Managing Director, Australia.

Through the strategic optimisation of mining assets, Gordon Brothers helps create flexibility for owners, operators, lenders and investors to help firms effect strategic change.

Gordon Brothers maintains 26 offices globally across North America, South America, Europe, Asia and Australia. The firm offers customised advisory, asset remarketing, operations and investment solutions on an integrated or standalone basis.

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